TEN Ltd Reports First Quarter 2017 Profits And Declares Dividend
$17.5 million net income for Q1 2017 or $0.16 earnings per share; 77% of Fleet on Long-Term Employment; $1.4 billion in minimum contracted future revenues
(firmenpresse) - ATHENS, GREECE -- (Marketwired) -- 05/12/17 -- TEN, Ltd (NYSE: TNP)
Net income of $17.5 million or $0.16 per share.
EBITDA of $61.6 million.
77% of total fleet on long-term charters with minimum revenues of $1.4 billion and average charter employment of 2.5 years.
Maintaining outstanding fleet utilization at 97.2%.
4% reduction in vessel daily operating expenses.
All 15 newbuildings on long-term contracts. Twelve vessels already delivered, three in the next three quarters.
Pro-forma fleet of 65 vessels, totaling 7.2 million dwt, consisting of 45 tankers that trade in the crude space, three shuttle tankers, 15 tankers carrying products and two LNG vessels.
Uninterrupted dividend distributions since inception. New dividend of $0.05 per common share declared for payment on July 14, 2017.
TEN, Ltd (TEN) (NYSE: TNP) (the "Company") today reported results (unaudited) for the quarter ended March 31, 2017.
Revenues, net of voyage expenses totaled $108.2 million, approximately $8.5 million more than in the first quarter of 2016, in part due to the delivery of new vessels.
Net income in the first quarter 2017 was $17.5 million, or $0.16 per share, net of preferred dividends.
Fleet utilization of 97.2% contributed to higher revenue. TEN has maintained a 95% plus utilization consistently. A remarkable accomplishment in a cyclical industry.
Since the beginning of 2017, TEN has taken delivery of four vessels, namely the VLCC Hercules I in January, the aframax crude carriers Marathon TS and Sola TS in February and April respectively, and its third shuttle tanker, the DP2 Lisboa in March, which started its time-charter in May, 2017.
Depreciation and dry-docking amortization costs increased by $6.1 million due to the introduction of new vessels into the fleet. No vessels were disposed of during the period, although there remains an expectation to sell certain older, for TEN''s standards, vessels during the course of the year.
Average daily operating costs per vessel decreased by 4% to $7,584 from $7,890 in the first quarter of 2016, mainly as a result of cost effective operations by our affiliated technical managers.
TEN''s daily average overhead expense per vessel was reduced by 5% to $1,139. G&A fell 12% from the first quarter 2016, mainly due to reduced promotional and miscellaneous expenses.
Interest and finance costs totaled $11.9 million, an increase over the first quarter of 2016 mainly due to reduced capitalized interest upon the completion of new vessels, increased indebtedness due to those new vessels and increases in the LIBOR rate, offset partly by gains on interest rate swaps.
Cash balances amounted to $160.1 million as of March 31, 2017. TEN''s balance sheet has been further strengthened with $115.0 million gross proceeds from an offering of preferred shares which closed in April.
Net debt to capital at March 31, 2017 was 54%. Earnings before interest, depreciation and amortization (EBITDA) in the first quarter of 2017 amounted to $61.6 million. All vessels generated a positive EBITDA, except for two vessels undergoing dry-docking in the period.
"TEN posted another profitable quarter in a challenging market environment. This is the best proof of management''s performance in executing a clearly defined strategy that takes into account the numerous and very complex parameters at play. Prudence and early preemptive action, together with ever increasing efficiency in managing costs, allows TEN to produce steady sustainable earnings and best in class results," Mr. Takis Arapoglou, Chairman of the Board stated. "This has been a steady pattern throughout the 24 years since TEN''s inception, allowing it to navigate effectively and efficiently through all business cycles, to consistently reward its shareholders, while adhering to strict corporate governance guidelines and adapting to evolving regulatory environments. Today, TEN has a fleet of 65 modern vessels, covering the whole spectrum from conventional crude and product tankers to higher value added DP shuttle tankers and LNG carriers. This unique fleet profile reflects TEN''s strategy to offer one platform serving all the needs of its prestigious client base. This new industrial model ensures stability, sustainable earnings and continued value creation for the shareholders," Mr. Arapoglou concluded.
The Company will pay a dividend of $0.05 per common share on July 14, 2017 to shareholders of record as of July 11, 2017. Inclusive of this payment, TEN will have distributed a total of $10.51 per share in uninterrupted dividends to its common shareholders since the Company''s listing on the NYSE in March 2002.
As expected, oil barrels from Nigeria, Libya, Iran and the rejuvenation of the US shale industry is filling the void the OPEC (and non-OPEC) cuts have created in the markets. As a result, oil prices continue to remain at attractive levels to stimulate global demand and by extension seaborne tanker trade. With oil prices at attractive levels and a low orderbook environment, we expect a long term upward momentum in freight rates. TEN, with the majority of the fleet in secured and flexible contracts and a notable presence in the spot market, would be a prime beneficiary of this expected uplift.
In line with the programmed deliveries, in January 2017 the VLCC Hercules I was delivered from Hyundai Heavy Industries in South Korea and was subsequently chartered for a period of up to 18 months. In February and April 2017, the aframax tankers Marathon TS and Sola TS were delivered from Daewoo Mangalia Heavy Industries, the fifth and sixth in a series of nine aframaxes built against long-term contracts. In March 2017, the Company took delivery of its third DP2 shuttle tanker Lisboa from Sungdong Shipbuilding in South Korea. The vessel was built against an eight year contract, with an option to extend to eleven years. In addition, the Company recently initiated a strategic partnership with a major US oil company starting with the chartering of three suezmaxes and one VLCC.
TEN''s 15-vessel newbuilding program is nearing completion with the final three aframax tankers expected to be delivered in the coming months. In the second half of the year, with all vessels delivered and 77% of the fleet on full utilization contracts, TEN''s industrial shipping strategy will be at full throttle.
As previously announced, today, Friday, May 12, 2017 at 10:00 a.m. Eastern Time, TEN will host a conference call to review the results as well as management''s outlook for the business. The call, which will be hosted by TEN''s senior management, may contain information beyond that which is included in the earnings press release.
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Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 866 819 7111 (US Toll Free Dial In), 0800 953 0329 (UK Toll Free Dial In) or +44 (0)1452 542 301 (Standard International Dial In). Please quote "Tsakos" to the operator.
A telephonic replay of the conference call will be available until Friday, May 19, 2017 by dialling 1 866 247 4222 (US Toll Free Dial In), 0800 953 1533 (UK Toll Free Dial In) or +44 (0)1452 550 000 (Standard International Dial In). Access Code: 90295809#
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There will also be a simultaneous live, and then archived, slides webcast of the conference call, available through TEN''s website (). The slides webcast will also provide details related to fleet composition and deployment and other related company information. This presentation will be available on the Company''s corporate website reception page at . Participants for the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
TEN, founded in 1993, is one of the first and most established public shipping companies in the world today. TEN''s pro-forma fleet, including three Aframax tankers under construction, consists of 65 double-hull vessels, constituting a mix of crude tankers, product tankers and LNG carriers, totalling 7.2 million dwt. Of these, 45 vessels trade in crude, 15 in products, three are shuttle tankers and two are LNG carriers.
For further information please contact:
Company
Tsakos Energy Navigation Ltd.
George Saroglou
COO
+30210 94 07 710
Investor Relations / Media
Capital Link, Inc.
Nicolas Bornozis
Paul Lampoutis
+212 661 7566
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Datum: 12.05.2017 - 06:30 Uhr
Sprache: Deutsch
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